In today’s briefing:
- ACCC Sour on ANZ/Suncorp Bank Deal Makes for A Good Trade
- Ramelius Bolts On Breaker
- Mincor Resources (MCR AU): Production Issues Result in the Board Succumbing to Wyloo’s Offer
- CSL Ltd (CSL AU): Looking into New Engines for Sustainable and Profitable Growth
- BHP: The More It Drops, The More We Buy
ACCC Sour on ANZ/Suncorp Bank Deal Makes for A Good Trade
- This morning, ACCC announced that it had released a “Statement of Preliminary Views” on the ANZ/Suncorp deal and sought further views.
- For now, the ACCC questions “the nature, likelihood, and extend of claimed public benefits” including synergies or claims regarding investment in Queensland.
- Based on my reading of the document, this view is likely to carry over through the final decision due mid-June 2023. That means there’s likely a trade here.
Ramelius Bolts On Breaker
- On the 20 March, gold play Breaker Resources Nl (BRB AU) announced a Offer from Ramelius Resources (RMS AU) of 1 RMS for every 2.82 BRB shares.
- The all-scrip takeover Offer backs out an implied Offer price of A$0.403/share or a 38.9% premium to last close.
- The Offer is conditional on 50.1% tendering with 19.92% of shares out supportive. The first close is the 1 May.
Mincor Resources (MCR AU): Production Issues Result in the Board Succumbing to Wyloo’s Offer
- Mincor Resources NL (MCR AU)’s Board has unanimously recommended Wyloo’s unconditional off-market takeover bid at A$1.40 per share. The offer price is final.
- The Board has taken the path of least resistance by recommending the offer instead of rejecting the low-balled offer and addressing the production quality issues.
- The offer is attractive in terms of multiples (EV/Resource and EV/Reserve) but at a discount to recent share prices and analyst price targets. Shares are trading in line with terms.
CSL Ltd (CSL AU): Looking into New Engines for Sustainable and Profitable Growth
- CSL Ltd (CSL AU) is well-positioned to report double-digit revenue and profit growth through FY25, driven by strong performance of existing business and new growth engines.
- CSL will launch FDA-approved gene therapy Hemgenix for Hemophilia B in the US in 2H23. With estimated global annual peak sales of $2.4B, Hemgenix is a compelling opportunity for CSL.
- During H1FY23, CSL reported record level of plasma collections, with 36% growth in volume. Current plasma collection is 10% above the pre-pandemic. Higher volume and yield will improve profitability.
BHP: The More It Drops, The More We Buy
- BHP Group Limited’s recent drawdown presents a lucrative opportunity for investors seeking to lower their portfolio cost basis.
- BHP’s exploration pipeline and planned pivot out of coal might add volume to its stock’s valuation.
- BHP is yet to realize the benefits of higher base metals prices.
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